“Tangoe delivered second quarter revenue and profitability that were
in-line with our expectations,” stated Al Subbloie, president and CEO of
Tangoe. “We believe the company is positioned to increase growth in
recurring revenue during the second half of 2014 due to continued strong
customer demand, combined with the strength of our upsell activity,
despite the mix of more complex deals impacting the timing of sales
activity converting to revenue. Longer-term, we remain confident in
Tangoe’s ability to gain market share due to our growing pipeline of
opportunities, international expansion and roll out of our new and
enhanced Matrix Connection Lifecycle Management suite.”

Second Quarter 2014 Financial Highlights

Revenue: Total revenue for the second quarter was $52.7
million, an increase of 14% on a year-over-year basis. Recurring
technology and services revenue was $47.1 million, an increase of 14%
on a year-over-year basis. Strategic consulting, software licenses and
other services revenue contributed the remaining $5.6 million of total
revenue for the second quarter of 2014.

Operating Income: GAAP operating income for the second quarter
was $0.2 million,compared to GAAP operating income of $0.8
million for the second quarter of 2013. Non-GAAP operating income for
the second quarter was $7.8 million,compared to $6.8 million
for the second quarter of 2013.

Net Income (Loss): GAAP net loss for the second quarter was
$(0.4) million, compared to $0.6 million of GAAP net income for the
same period last year. GAAP net loss per share for the second quarter
was $(0.01), based on 38.7 million weighted-average shares
outstanding, compared to GAAP net income per share of $0.01, based on
40.2 million weighted-average diluted shares outstanding, for the same
period last year.

Non-GAAP net income for the second
quarter was $7.2 million compared to $6.4 million for the second
quarter of 2013. Non-GAAP diluted net income per share for the second
quarter was $0.18 based on 41.1 million weighted-average diluted
shares outstanding compared to $0.16 per share based on 40.2 million
weighted-average diluted shares outstanding for the same period last
year.

Adjusted EBITDA: Adjusted EBITDAfor the second quarter
was $8.4 million, compared to $7.3 million for the second quarter of
2013. Adjusted EBITDA margin was 15.9% for the second quarter of 2014,
compared to a 15.7% margin for the same period last year.

Cash and Cash Flow: As of June 30, 2014, Tangoe had cash and
cash equivalents of $45.7 million, a decrease of $0.4 million from the
end of the prior quarter, primarily due to the repurchase of common
stock during the quarter.

The company generated $2.8
million in net cash from operations for the second quarter of 2014,
compared to $4.8 million during the second quarter of 2013. The
company generated $2.0 million in unlevered free cash flow for the
quarter, compared to $4.1 million during the second quarter of 2013.

A reconciliation of GAAP to non-GAAP financial measures has been
provided in the financial statement tables included in this press
release. An explanation of these measures is also included below under
the heading “Non-GAAP Financial Measures.”

Financial Outlook

As of August 6, 2014, Tangoe is providing guidance for its third quarter
and full year 2014.

Third Quarter 2014 Guidance: Total revenue is expected to be in
the range of $55.0 million to $55.7 million. Adjusted EBITDA is
expected to be in the range of $9.1 million to $9.4 million. Non-GAAP
net income per share is expected to be in the range of $0.19 to $0.20
based on approximately 41.4 million weighted-average diluted shares
outstanding.

Full Year 2014 Guidance: Total revenue is expected to be in the
range of $217.0 million to $219.0 million. Adjusted EBITDA is expected
to be in the range of $35.0 million to $36.0 million. Non-GAAP net
income per share is expected to be in the range of $0.73 to $0.75
based on approximately 41.4 million weighted-average diluted shares
outstanding.

Quarterly Conference Call

Tangoe will host a conference call today at 5:00 p.m. EDT to review the
company's financial results for the second quarter 2014 and business
outlook. To access this call, dial 877.419.6594 (United States), or
719.325.4783 (international), with conference ID #2070580. A live
webcast of the conference call will be accessible from the investor
relations page of Tangoe's website at http://investor.tangoe.com,
and a recording will be archived and accessible at http://investor.tangoe.com/events.cfm.
A recording of this conference call will also be available through
August 20, 2014, by dialing 877.870.5176 (United States), or
858.384.5517 (international). The recording access code is #2070580.

About Tangoe

Tangoe (NASDAQ:TNGO) is a leading global provider of Connection
Lifecycle Management software and services to a wide range of global
enterprises and service providers. The company's Connection Lifecycle
Management technology, Matrix, is an on-demand suite of software and
services designed to turn on, track, manage, secure, and support various
connections in an enterprise's connection lifecycle, including mobile,
fixed, machine-to-machine, cloud software and services, enterprise
social, and IT connections. Additional information about Tangoe can be
found at www.tangoe.com.

Tangoe is a registered trademark of Tangoe, Inc.

Non-GAAP Financial Measures

Adjusted EBITDA discussed in this press release is defined as net income
(loss) plus interest expense, income tax provision, depreciation and
amortization, amortization of marketing agreement intangible assets,
stock-based compensation expense and, for 2013 only, restructuring
charge; less amortization of leasehold interest, interest income and
other income (expense). Non-GAAP operating income excludes stock-based
compensation expense, amortization of intangible assets and, for 2013
only, restructuring charge. Non-GAAP net income excludes stock-based
compensation expense, amortization of intangible assets, amortization of
debt discount, other income (expense), and, for 2013 only, restructuring
charge. Unlevered free cash flow is defined as net cash provided by
operating activities plus net interest payments, less capital
expenditures. Management presents these non-GAAP financial measures
because it considers them to be important supplemental measures of
performance. Management uses the non-GAAP financial measures for
planning purposes, including analysis of the company's performance
against prior periods, the preparation of operating budgets and
determination of appropriate levels of operating and capital
investments. Management also believes that the non-GAAP financial
measures provide additional insight for analysts and investors in
evaluating the company's financial and operational performance. However,
these non-GAAP financial measures have limitations as an analytical tool
and are not intended to be an alternative to financial measures prepared
in accordance with GAAP. We intend to provide these non-GAAP financial
measures as part of our future earnings discussions and, therefore, the
inclusion of these non-GAAP financial measures will provide consistency
in our financial reporting. A reconciliation of these non-GAAP measures
to GAAP is provided in the accompanying tables.

Forward-Looking Statements

This press release contains forward-looking statements that involve
substantial risks and uncertainties. All statements, other than
statements of historical facts, included in this press release regarding
our strategy, future operations, future financial position, future
revenue, projected costs, prospects, plans and objectives of management
are forward-looking statements. The words "anticipate," "believe,"
"estimate," "expect," "intend," "may," "plan," “target,” "would" and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these identifying
words. These forward-looking statements include, among other things,
statements about our estimates regarding future revenue and financial
performance. We may not actually achieve the expectations disclosed in
our forward-looking statements, and you should not place undue reliance
on our forward-looking statements. Actual results or events could differ
materially from the expectations disclosed in the forward-looking
statements we make. More information about potential factors that could
affect our business and financial results is contained in our Quarterly
Report on Form 10-Q as filed with the Securities and Exchange Commission
on May 12, 2014. Additional information will also be set forth in our
future quarterly reports on Form 10-Q, annual reports on Form 10-K and
other filings that we make with the Securities and Exchange Commission.
We do not intend, and undertake no duty, to release publicly any updates
or revisions to any forward-looking statements contained herein.